The 500 MW Bellary Thermal Power project promoted by the state-owned Karnataka Power Corporation (KPCL) is likely to get mega power project status.

It is learnt that the Union government is keen to lower the threshold limit for according mega power status to state-owned power projects from 1000 MW to 500 MW.

If accorded, the project cost of the Bellary plant would come down by at least Rs.400 crore, bringing down power tariffs by at least Re.0.05 per unit to reach a very competitive Rs.2 per unit. It is further learnt that the project might have to convert itself into an inter-state project if the mega project status were to be availed.

The Bellary project has already gone into financial closure with about 22 banks and financial institutions extending debt finance of Rs.1,680 crore or about 80 per cent of the total project cost of Rs.2,100 crore.

The requirement of washed coal was expected to be about 2.8 million tonnes per annum, assuming a calorific value of 3,000 kilo calories per kg and a plant load factor of 80 per cent. Coal linkages have been firmed up with Talcher coalfields.

Bharat Heavy Electricals, the EPC contractor, has committed to completing project construction in 36 months .

On completion, BTPS was expected to add at least 3,300 million kwh per year into the southern grid.